DoD's $17.9M Contract for AN/SUW & VLS Support Awarded to BAE Systems

Contract Overview

Contract Amount: $17,947,304 ($17.9M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Defense

Start Date: 2005-12-20

End Date: 2013-06-30

Contract Duration: 2,749 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ANIT-SURFACE WARFARE (SUW) AND VERTICAL LAUNCHING SYSTEM (VLS) SUPPORT

Place of Performance

Location: KING GEORGE, KING GEORGE County, VIRGINIA, 22485

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: ANIT-SURFACE WARFARE (SUW) AND VERTICAL LAUNCHING SYSTEM (VLS) SUPPORT Key points: 1. Contract value of $17.9M for critical naval warfare systems support. 2. BAE Systems Technology Solutions & Services Inc. is the sole awardee. 3. Competition method was 'Full and Open', suggesting potential for price discovery. 4. The sector is Defense, specifically Engineering Services for the Navy.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the specific award mechanism (Delivery Order) and the nature of specialized engineering services might limit the practical breadth of competition.

Taxpayer Impact: Taxpayer funds are being used for specialized engineering support for naval systems. The effectiveness of competition in driving down costs for this specific type of service is a key consideration for taxpayer value.

Public Impact

Ensures continued operational readiness of critical naval warfare systems. Supports advanced technology development and maintenance for the U.S. Navy. Potential for job creation within the defense engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Limited visibility into specific cost drivers for engineering services.
Long contract duration (2005-2013) may not reflect current market rates.

Positive Signals

Awarded under full and open competition.
Supports critical national defense capabilities.
Experienced contractor (BAE Systems) likely brings significant expertise.

Sector Analysis

This contract falls within the Defense sector, specifically engineering services for naval systems. Spending benchmarks for similar specialized engineering support can vary widely based on system complexity and duration.

Small Business Impact

The awardee is BAE Systems Technology Solutions & Services Inc., a large business. There is no indication of small business participation in this specific award, which is common for large, specialized defense contracts.

Oversight & Accountability

The Department of the Navy is responsible for oversight. The contract type and delivery order structure suggest ongoing monitoring of performance and costs would be necessary to ensure accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to Cost Plus Fixed Fee structure.
Limited transparency into specific cost components of engineering services.
Risk of contractor lock-in for highly specialized technical support.
Contract duration spans a significant period, potentially impacting cost competitiveness with current market rates.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. ANIT-SURFACE WARFARE (SUW) AND VERTICAL LAUNCHING SYSTEM (VLS) SUPPORT

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $17.9 million.

What is the period of performance?

Start: 2005-12-20. End: 2013-06-30.

What was the total cost growth or savings realized under this Cost Plus Fixed Fee contract over its duration?

Determining the exact cost growth or savings requires access to detailed financial reports and performance metrics from the Department of the Navy. Cost Plus Fixed Fee contracts can sometimes lead to costs exceeding initial estimates if scope creep occurs or if the fixed fee is not adequately calibrated to the effort required. Without specific data, it's difficult to assess the final financial outcome.

How effectively did the 'Full and Open Competition' translate into competitive pricing for these specialized engineering services?

While the contract was competed, the specialized nature of AN/SUW and VLS support means the pool of qualified bidders might be limited. 'Full and Open' ensures the opportunity for competition, but the actual price discovery depends on the number and capability of responsive bidders. The final price reflects the outcome of this specific competition, but it's hard to gauge its competitiveness without comparing it to other potential bids or market rates for similar niche services.

What is the long-term strategic value of this specific engineering support contract for the Navy's technological advancement?

This contract likely provides essential engineering expertise to maintain and potentially upgrade critical naval warfare systems. Its strategic value lies in ensuring the operational readiness and technological relevance of the fleet's offensive and defensive capabilities. Continued support from experienced contractors like BAE Systems can facilitate smoother integration of new technologies and address obsolescence issues, contributing to the Navy's long-term modernization goals.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002406R3041

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $673,555,839

Exercised Options: $122,269,014

Current Obligation: $17,947,304

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4018

IDV Type: IDC

Timeline